Israel: Background and U.S. Relations in Brief Jim Zanotti Specialist in Middle Eastern Affairs December 22, 2017 Congressional Research Service 7-5700 www.crs.gov R44245 Israel: Background and U.S. Relations in Brief Contents U.S.-Israel Relations: Current Status ............................................................................................... 1 Israeli-Palestinian Issues ................................................................................................................. 3 Jerusalem: New U.S. Stance and Implications .......................................................................... 4 Settlements ................................................................................................................................ 7 Regional Security Issues.................................................................................................................. 8 Iran and Its Allies ...................................................................................................................... 9 Lebanon-Syria Border Area and Hezbollah ............................................................................ 10 Palestinians ............................................................................................................................... 11 Domestic Israeli Developments ..................................................................................................... 12 Figures Figure 1. Israel: Map and Basic Facts ............................................................................................. 2 Figure 2. Jerusalem: U.S. Sites and Other Selected Sites ................................................................ 7 Contacts Author Contact Information .......................................................................................................... 13 Congressional Research Service Israel: Background and U.S. Relations in Brief U.S.-Israel Relations: Current Status For decades, strong bilateral relations have fueled and reinforced significant U.S.-Israel cooperation in many areas, including regional security. Nonetheless, at various points throughout the relationship, U.S. and Israeli policies have diverged on some important issues. Significant differences regarding regional issues—notably Iran and the Palestinians—arose or intensified during the Obama Administration.1 Since President Donald Trump’s inauguration in January 2017, he and Israeli Prime Minister Binyamin Netanyahu have discussed ways “to advance and strengthen the U.S.-Israel special relationship, and security and stability in the Middle East.”2 A number of issues have significant implications for U.S.-Israel relations. They include Various controversies regarding Israeli-Palestinian issues and diplomatic efforts to address them, including President Trump’s December 2017 recognition of Jerusalem as Israel’s capital and announced plan to relocate the U.S. embassy in Israel there. Regional security issues (including those involving Iran, Hezbollah, Syria, and Hamas) and U.S.-Israel cooperation. Israeli domestic political issues, including an ongoing criminal investigation of Prime Minister Netanyahu. For background information and analysis on these and other topics, including aid, arms sales, and missile defense cooperation, see CRS Report RL33476, Israel: Background and U.S. Relations, by Jim Zanotti; CRS Report RL33222, U.S. Foreign Aid to Israel, by Jeremy M. Sharp; and CRS Report R44281, Israel and the Boycott, Divestment, and Sanctions (BDS) Movement, coordinated by Jim Zanotti. 1 See, e.g., “Israeli officials: US abstention was Obama’s ‘last sting,’ showed his ‘true face,’” Times of Israel, December 24, 2016; Jeffrey Goldberg, “The Obama Doctrine,” The Atlantic, April 2016; Jason M. Breslow, “Dennis Ross: Obama, Netanyahu Have a ‘Backdrop of Distrust,’” PBS Frontline, January 6, 2016; Sarah Moughty, “Michael Oren: Inside Obama-Netanyahu’s Relationship,” PBS Frontline, January 6, 2016. 2 White House Office of the Press Secretary, “Readout of the President’s Call with Prime Minister Netanyahu of Israel,” January 22, 2017. See also Aron Heller, “After Obama, Israel’s Netanyahu relishing in Trump love fest,” Associated Press, October 19, 2017. Congressional Research Service 1 Israel: Background and U.S. Relations in Brief Figure 1. Israel: Map and Basic Facts Sources: Graphic created by CRS. Map boundaries and information generated by Hannah Fischer using Department of State Boundaries (2011); Esri (2013); the National Geospatial-Intelligence Agency GeoNames Database (2015); DeLorme (2014). Fact information from CIA, The World Factbook; Economist Intelligence Unit; IMF World Outlook Database; Israel Central Bureau of Statistics. All numbers are estimates and as of 2017 unless specified. Notes: United Nations Disengagement Observer Force (UNDOF) withdrew to Israeli-controlled territory in the Golan Heights in September 2014. The West Bank is Israeli-administered with current status subject to the 1995 Israeli-Palestinian Interim Agreement; permanent status to be determined through further negotiation. The status of the Gaza Strip is a final status issue to be resolved through negotiations. Boundary representation is not necessarily authoritative. Congressional Research Service 2 Israel: Background and U.S. Relations in Brief Israeli-Palestinian Issues President Trump has stated aspirations to help broker a final-status Israeli-Palestinian agreement as the “ultimate deal.” The President’s advisors on Israeli issues include his senior advisor Jared Kushner (who is also his son-in-law), special envoy Jason Greenblatt, and U.S. Ambassador to Israel David Friedman.3 Various political developments during 2017 (some of which are discussed below) have raised questions about whether and when a new U.S.-backed diplomatic initiative might surface. For example, some of President Trump’s statements have fueled public speculation about the level of his commitment to a negotiated “two-state solution,” a conflict- ending outcome that U.S. policy has largely advocated since the Israeli-Palestinian peace process began in the 1990s. A number of aspects of the Israeli-Palestinian conflict have remained relatively constant in recent years. There has been little or no change in the gaps between Israeli and Palestinian positions on key issues of dispute since the last round of direct, U.S.-brokered talks broke down in April 2014. Additionally, Israel maintains overarching control of the security environment in Israel and the West Bank. Palestinians have been divided since 2007 between a Palestinian Authority (PA) administration with limited self-rule in specified West Bank urban areas—led by the Fatah movement and PA President Abbas—and Hamas control in the Gaza Strip. The Palestinians also face major questions regarding future leadership.4 In late 2017, the leading Palestinian factions took tentative steps toward more unified rule. In October, Fatah and Hamas reached an Egyptian-mediated agreement aimed at allowing the Fatah- led PA greater administrative control over Gaza.5 The PA gained at least nominal control of Gaza’s border crossings with Israel and Egypt in November, but a larger handover of control has been delayed since early December. It is unclear whether this handover will take place, or whether the unity agreement—like similar agreements since 2007—will remain unimplemented.6 The question appears to center on Hamas’s willingness to cede control of security in Gaza.7 PA President Abbas has maintained that he will not accept a situation where PA control is undermined by Hamas’s militia.8 Observers debate how the President’s December decision to recognize Jerusalem as Israel’s capital and announce plans for moving the U.S. embassy from Tel Aviv to Jerusalem (discussed below) might complicate any attempt to relaunch Israeli-Palestinian talks in 2018.9 Some commentators surmise that the Administration probably expects leaders from Arab states (such as 3 Friedman’s nomination and Senate confirmation (which took place via a 52-46 vote) attracted attention because of his past statements and financial efforts in support of controversial Israeli settlements in the West Bank, and his sharp criticism of the Obama Administration, some Members of Congress, and some American Jews. At Friedman’s February 16, 2017, nomination hearing before the Senate Foreign Relations Committee, he apologized for and expressed regret regarding many of the critiques he previously directed at specific people. 4 See CRS In Focus IF10644, The Palestinians: Overview and Key Issues for U.S. Policy, by Jim Zanotti. 5 CRS Report RL34074, The Palestinians: Background and U.S. Relations, by Jim Zanotti. 6 Grant Rumley and Neri Zilber, “Can Anyone End the Palestinian Civil War?” foreignpolicy.com, October 16, 2017. 7 Ibid.; Saud Abu Ramadan et al., “Hamas Deal to Cede Gaza Control Sets Up Showdown Over Guns,” Bloomberg, October 2, 2017. 8 Matthew Levitt and Aviva Weinstein, “How Hamas’ Military Wing Threatens Reconciliation With Fatah,” foreignaffairs.com, November 29, 2017. For additional background, see Avi Issacharoff, “Sick of running Gaza, Hamas may be aiming to switch to a Hezbollah-style role,” Times of Israel, October 1, 2017. 9 Margaret Talev and Jennifer Jacobs, “Jerusalem Divides Trump’s Team and Complicates Kushner’s Peace Plan,” Bloomberg, December 6, 2017. Congressional Research Service 3 Israel: Background and U.S. Relations in Brief Saudi Arabia, Jordan, and Egypt) to continue their support for a U.S.-led peace